Living in the city as compared to the suburbs is all set to get more costlier from October with the Municipal Corporation of Greater Mumbai's passing the new property tax norms.
Living in the city as compared to the suburbs is all set to get more costlier from October with the Municipal Corporation of Greater Mumbai's (MCGM) passing the new property tax norms.
"The new tax structure is likely to be followed by October. Those living in the island will have to pay twice the property tax than they currently pay while those residing in suburbs will get a rebate of 25-30 per cent," chief assessor and collector NA Pathan said.
The new property tax, which was passed during the General Body meeting this week, will be calculated as per the capital value of property. The new property tax will be calculated on the basis of the current market value of the property based on five factors - price, area, age, and type of property.
Currently, citizens are charged as per the rental value of their property meaning the property tax is calculated on the basis of the rent paid, Pathan said.
Once the new tax revision is implemented in October, there will be no tax hike for residential properties ad measuring up to 500 sq ft for five years but later extra tax of up to 40 per cent may be imposed, official sources said.
Similarly, residential properties ad measuring over 500 sq ft will have no tax hike for five years but later a 100 per cent hike is expected, they said.
For commercial properties in the island city there will be a hike of up to three times from this year.
For residential and commercial properties in suburbs a rebate of up to 25 to 30 per cent is expected from this year, the sources said.
"Today, citizens are charged property tax as per the rental value of their property. As a result those residing in south Mumbai where rents are low as per the Rent Control Act, end up paying meagre tax as compared to the suburbs," a civic official said.
"The island City has been paying peanuts in terms of property tax while suburbs are heavily taxed. The new capital value system will ensure at least some kind of equality," the official said.
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